The flotation of Chinese bank AgBank is now the biggest IPO ever
| Date: August 14, 2010 | Source: Europa Press |
| Category: Bags and Markets | |
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Loading ... The Chinese bank Agricultural Bank of China (AgBank) has successfully completed the largest IPO in history to raise funds for a total of 22,100 million (17.294 million euros) after running the section intended to oversubscription ('greenshoe') .
However, says the Financial Times' claim that 'honorable mention' has been a laborious task for both the entity and for the underwriters of the offering and the Chinese institutional investors, who have struggled over the last 30 days to keep the stock price of AgBank above the IPO price set forth in order to avoid review of the fee for oversubscription.
Specifically, AgBank was listed on the Shanghai Stock Exchange on 15 July to debut a day later on the floor of Hong Kong amid high volatility and uncertainty in the equity markets, which allowed only one value manetener slight increase on the price of the IPO in its first week of trading.
Since then, shares of AgBank have shown a better performance in the Hong Kong than in Shanghai, where the share price has fallen back to levels set in the IPO.
Thus, initially erratic behavior shown by the actions of AgBank raised fears that the underwriters were forced to recover some of advance fee oversubscription committed, which would have thwarted the bid to become the largest IPO ever, surpassing also Chinese Industrial & Commercial Bank of China (ICBC), which grossed 21,900 million (17.132 million euros) in 2006 and to date listed as the largest market worldwide debut.
